Question: A 3-year project has a contribution margin of $16, projected fixed costs of $120,000, a projected variable cost per unit of $12, straight-line depreciation for

A 3-year project has a contribution margin of $16, projected fixed costs of $120,000, a projected variable cost per unit of $12, straight-line depreciation for 3 years of $50,000 (per year), and a projected present value break-even point of 13,601.20 units. The tax rate is 34% and the discount rate is 13%. What is the equivalent annual cost?

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